Tag: Royal Mail

The postal strikes have left 120 million letters and parcels stranded in sorting offices, with the post watchdog warning that the backlog will take until next week to clear.

The news came as it emerged that more than of half of small firms want to stop using the Royal Mail after the strikes which have cost the London economy alone more than GBP 300 million.

Sources at the Royal Mail said there were one and a half days worth of post — 120 million letters and parcels — stuck in the system after last week’s five-day strike and unofficial stoppages.

This could take “several days” to clear, the source said.

However Postwatch, the industry watchdog, estimated the backlog at 200 million letters and parcels. This would take a week to clear, it said. Andy Frewin, a spokesman, said: “We would expect things to be back to normal next Monday if they work as normal this week.”

A survey by the British Chambers of Commerce found that 55 per cent of small firms are now more likely to use private delivery companies. Natalie Evans, the head of policy, said: “This result really hammers home the damage that this dispute has done to Royal Mail.

“Small businesses rely on a decent post service and have been let down badly over the past few weeks.”

The survey of more than 250 company directors showed that almost half thought the strikes had cost their firm at least GBP 1,000 each.

The Royal Mail has launched a multimillion pound statutory review of its brand strategy, advertising and direct marketing agency roster.

Current incumbents Abbott Mead Vickers.BBDO (above-the-line), Wolff Olins (branding) and Proximity (DM) will all be invited to repitch for the four-year contracts.

The review is being led by Tom Hings, director of brand marketing at Royal Mail, and comes amid the company’s very public disputes with the Communications Workers Union over plans to modernise operations.

National postal strikes were officially stopped last week but talks continue over pay, pensions, job cuts and working practices.

Last week, the Direct Marketing Association announced plans to significantly reduce the wastage from direct mail in response to a report by the Environment Council into stemming the tide of ‘junk mail’.

The company is facing stiff competition from other postal carriers and the growing reach of digital, resulting in its first financial loss in six years in August.

Royal Mail awarded its GBP 18 million media planning and buying business to OMD in April, after a two-way shoot-out with 10 year incumbent Carat.